That problem is self-correcting as long as it's possible for the company to actually die. It's the governments, heavily entrenched mega-companies, and companies that are "too big to fail" that I'm more worried about.
It's self correcting in the individual company, but does it at a systematic level? It seems (although this is a case where data would be a lot better than a 'gut feeling') that there are more, and more egregious cases of "executives gone wild" in recent history as compared to, say, the 50ies.
In economics, "other people's money" is called the principal-agent problem, and it's an interesting one.